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...There, a majority of ETF trading has pretty much always happened off-exchange, typically through requests-for-quote venues (Europeans looove RFQ)....
...McManus explains there are many ways to trade OTC, including via RFQ platforms, and that Nutmeg will pick the right strategy for the individual circumstance....
...We feel that a streaming model keeps everyone honest, but if we have to go down the RFQ road then we will,” said Mr Bruce....
...The regulations that upended the debt-trading world effectively shrank the balance sheet of banks and dealers, making it costlier to take on risk....
...What officials are watching closely is the continued use of RFQ systems rather than the transparent central order booking structure....
...In June, BlackRock, the world’s largest fund manager, announced plans to create a single market for ETFs in Europe by launching a new product that could settle across borders, a change from current practices...
...RFQ trading will allow clients to ask for competing price quotes from up to five dealers at one time for buying and selling ETFs listed on the LSE and Borsa Italiana....
...As the world between dealers and investors converges, all prospective swap trading platforms will need to connect with a wide range of participants....
...It was a point underlined by Robert Merton, the economist, to the world’s exchange bosses this week at the World Federation of Exchanges meeting in Mexico City....
...For older CDS indices, Mr Chilton has proposed allowing SEFs to set their own RFQ rule with a two RFQ minimum....
...While the winner’s curse is alleviated by dropping the number of RFQs, the reality is that the over-the-counter market under a two RFQ model will not be open to all investors, let alone challenge the traditional...
...“Two RFQ is better than just one, which would be business as usual for the banks,” said a director for a Sef platform....
...Mr Poletto said the RFQ facility was expected to be operational in the first quarter of 2013....
...The agencies differ in some areas, such as on how many parties must see a quote before a trade can be executed by a broker in a so-called “request for quote”, or RFQ, trade....
...“One of my primary concerns is that the CFTC is moving out of step in time, substance, or both with the SEC and the rest of the world in implementing trade execution requirements for standardised swaps,”...
...Even on Tradeweb’s electronic platform for swaps, RFQs are usually sent by a client to one or two dealers....
...Its software sends out request for quotes (RFQ) for potential forex options transactions from buyers to sell-side liquidity providers....
...This is not stopping some dealers from preparing for an algo-driven world....
...Many in the industry had lobbied regulators to preserve the RFQ model, but were left reeling on Thursday over how to implement a ‘”transparent” RFQ service....
...The Tradeweb swap, however, was transacted under a request-for-quote (RFQ) process, said a spokesman for the company....
...Except, argue many in the industry, what works in the world of futures and equities is not easily applied to OTC derivatives....
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